This presentation focuses on the global business environment and its impact on SASOL, a leading chemical organization. It covers the concept of globalization, PESTLE analysis, driving factors, challenges, and recommendations. The role of digital technology in globalization is also discussed.
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Global Business Environment
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TABLE OF CONTENT Introduction Concept of globalization PESTLE analysis Driving factors of globalization Impact of digital technology on globalization Challenges faced Recommendations Conclusion References
INTRODUCTION Global business environment refer to set of factors that create atmosphere in the business world which put direct impact on success and growth of a company. It is also defined as environment that created in varied sovereign nations where different forms of organizations accessible and run their ventures successfully. The current assignment will be based on SASOL, which falls under the category of leading chemical organizations in the world.
CONCEPT OF GLOBALIZATION Globalisationmeanswhenthecompanyis expanding it's business in other countries. It also means that other countries allow companies to set upoperationin their country. Besides this other countries also allows foreign investment into their main sector of its economy.
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PESTLE ANALYSIS It is an analysis of the external factors that affects the organization they are Political, Economic Social, Technological, Legal and Environmental. These factors helps the managers in taking decisions of the company Political factor Economic factor Social factor Technological factor Legal factor Environmental factor
CONTINUED.. Political factor •Consideri ng tax rate as it affect working of business to a great extent Economic factor •Analysis interest rate as it affects operation of company Social factor •Ascertain the attitude and preferenc e of consumer Technologic al factor •Include the latest need relating to technolog y Legal factor •Proper complian ce with different rules and regulation Environment al factor •Protectio n of environm ent and CSR
KEY DRIVING FACTORS FOR GLOBALIZATION Therearevariousfactorsthat drives the globalisation process so SASOL Ltd.much consider these factor before entering into new market. These factors are as under- Economies of scale Technology change Difference in tax systems Intense competition Labor availability Lower transportation Lower trade barriers
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IMPACT OF DIGITAL TECHNOLOGY ON GLOBALIZATION DigitalTechnologymeanstostoreinformationthroughtheuseof electronic devices. Itincludes all the electronic devicesand systems in which you can record the data and store. Digital Technology plays a very important role in influencing companies to go into globalisation. E- commerce has a huge impact as companies can sell their products from anywhere or in any parts of the world. Financial companies are also impacted by digital technology as they transfer money through electronic money.
CHALLENGES SASOL Ltd. faces challenge in supply chains as companygrowing its networkand expanding it's business in other parts of the world. In case of remote areas where suppliers don't know about the industry rules so to encourage them is a challenge. Before entering into new market company must look the development of local suppliers and helps them how to do business.
RECOMMENDATIONS It is advisable to companyto fulfilsthe laws related to maintaining the air qualityand also the norms set for the power and steam plant. Besides this company must follow the rules that are included in the Air quality Act. Firm need to follow all the international standards before setting up new plant across the world. Organisation must fulfils the standards set for the power plants and coal gas plant.
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CONCLUSION From this presentation it is concluded thatthere are many factors that drives the organisation to go globally. These factors are economies of scale, difference in tax systems, technology change and intense competition it encourages firms to globalize. Besides this, company must dopestle analysis asexternal factorsaffects the company while entering into the new market.
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